Elon Musk has made an offer of $97.4 billion offer to acquire the assets of OpenAI.However, Sam Altman rejected the bid. Additionally, Elon Musk led the bid with VyCapital, xAI, and Hollywood power broker Air Emanuel according to the reports. Furthermore, this offer aims to take control of the nonprofit entity that oversees OpenAI that is in the process of transitioning into a for -profit company. In this article, we will discuss more about the bid.
Elon Musk bids $97.4 billion for OpenAI
After the news of the OpenAI bid came , Sam Altman dismissed the offer through a post in X. Furthermore, the post stated that No, thank you, but we will buy Twitter for $9.74 billion. However Elon Musk responded to the post calling Sam Altman a “swindler”. However Musk was one of the backers of Open AI in 2015 but he left the company after power struggle.
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Why Elon Musk is suing OpenAI
Elon Musk has shared his concerns regarding the direction of OpenAI. Furthermore, he sued the company last year over its partnership with Microsoft. Additionally, he also accused it of becoming a closed source de facto subsidiary of the tech giant. However the legal team of Musk argued that Open AI’s shift to the profit driven model is against its original mission.
Musk’s Attorney Marc Toberoff said that it is vital that the charity be fairly compensated for what its leadership is taking away from it: control over the most transformative technology of our time. However the latest bid of Elon Musk can complicate the ongoing restructiong efforts of Open AI. Moreover the non profit entity still holds a stake in its for profit counterpart.
Furthermore, the timing of the bid is important as OpenAI is in the process of securing a $40billion funding round led by Softbank. However, this can value the company at about $300billion which is one of the highest valuations for any private AI firm.
Impact of the Bid on the AI Industry
The news of Open AI bid comes during a period of increased competition in the AI sector. Additionally major tech firms are significantly boosting the AI investments. However as the Musk ans Sam Altman is continuing to clash over the mission of Open AI the bid tells us about the tensions in the AI industry. Additionally there ore problems over the profit motives of the company, open-source development and control of the future of technology.
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Shift of Open AI for a Profit Model
One of the major event of the journey of Open AI is when the organisation transitioned from a non profit model to a “capped- profit ” model. Furthermore this shift was made to get the funding required to compete in the AI research against the well funded corporations like Google, Microsoft and Facebook.
However, Microsoft became the financial support for the Open AI. Furthermore, Microsoft invested billions of dollars to support the AI models including GPT-3 and GPT-4. Moreover, this move of the Open AI led to the concerns that the company is becoming commercially driven. However another concern was that the company is becoming less aligned with the original goal of AI development.
Elon Musk was the advocate for the safety and accessibility of AI. However he became one of the strongest critics of Open AI. Additionally he argued that the organisation has stayed away from its original mission and it is no longer open source. He also said that Open AI is now not the non profit entity that he supported once.
AI Ambitions of Elon Musk
In 2023 Elon Musk launched xAI , it is an AI company that is aimed at developing truth seeking artificial intelligence. Furthermore, the first major product of the xAI is Grok. Additionally, it is an AI Chatbit that is integrated with X. however , the chatbot is designed to provide real time , witty and uncensored responses.
Elon Musk has considered xAI as the competitor of Open Al and DeepMind of Google. Furthermore,he has emphasized its commitment to the open source AI and reduced censorship. Moreover, Elon Musk has also invested acquiring the computer power as he purchased thousands of high performance GPU’s inorder to support the xAI’s research.
However some of the analysts thinks that the lawsuit of Elon Musk against Open AI is driven by the competitive motives. Furthermore,he also wanted to position xAI as a leading player in the AI Space. Others think that the concerns of ELon Musk about safety of AI is genuine .
The Future of AI
The battle between Elon Musk and Open AI raises some important questions about the future of AI. Furthermore, there are also concerns about AI governance and corporate influence. Some of the major issues related to Open AI are
- There are concerns about the ethics and transparency of AI
- Governments are considering to regulate the AI
- The landscape of AI is evolving rapidly as more companies are competing in AI development.
Conclusion
The CEO of OpenAI Sam Altman has rejected the $97.4 billion offer of Elon Musk. Furthermore, Elon Musk made the bid on February 10th, 2025. Moreover, Sam Altman has pushed OpenAI to a profitable business model. Additionally, it is reflected in the company’s growing valuation and its drive for investment. However, Elon Musk has advocated Open AI to return to its original mission.in this article, we have discussed the OpenAI bid of Elon Musk.
